Currently, Los Angeles does not charge the extraction tax, but several of its neighboring cities do. Culver City has a $1.55 per barrel tex, and the ones in Beverly Hills and Long beach are less than a dollar each.
Opponents to the measure, which include oil companies and other small businesses, note that this new tax would be established above and beyond the business taxes they already pay.
But as the city looks to cut more services from its residents, that’s at tricky message to send home to voters, especially as oil prices continue to increase and the companies report record profits.
From the Contra Costa Times:
Supporters say the new tax would be reasonable and reimburse the city for the industry’s impact on communities by generating $4 million a year.
Opponents argue there would be economic pain because the tax would discourage small oil producers from doing business here, affecting L.A.-based subcontractors and taking away local jobs.
Measure O on the Los Angeles ballot March 8 would impose an extraction tax on local oil drilling in an effort to pump new revenues into cash-starved city coffers.
Read the full article here.